BBNI - BNI Finance's new financing distribution soared

BBNI - BNI Finance's new financing distribution soared BNI Multifinance (BNI Finance) recorded a positive performance in distributing new financing until May 2024. According to BNI Finance the company had succeeded in disbursing new financing of IDR2.25 tn, or grew 488% compared to the same period last year. This significant increase was due to the transformation of BNI Finance's business, which began entering the retail sector in early 2023 after previously focusing on corporate business. This transformation has been successfully carried out. Of the total new financing until May2024, consumer financing dominates with a share of around 93%. However, there were a number of challenges that could hamper the distribution of company financing this year. One of the main challenges is financing new four-wheeled vehicles, which is expected to be difficult in line with the decline in new vehicle unit sales in YTD 2024. (Source: Kontan) Comment : We like BNI multifinance new financing growth as of May 24. We expect the positive performance to continue and positively impact the overall BBNI performance. Transmission to a higher loan yield in another segment is likely to happen sooner than in the in the consumer loan segment. As such, we still expect to witness ‘24F growth that will be similar to 2023. Maintain our buy call for BBNI with a GGM TP of IDR6,530 (1.4x ‘24F P/B).